Should You Avoid Actively Managed ETFs?

Actively managed exchange-traded funds (ETFs) have drawn mixed reviews from investors. On one hand, currency-hedged ETFs and “smart beta” ETFs have seen tremendous capital inflows as investors look to isolate opportunities. On the other hand, passively managed ETFs have consistently drawn capital away from their actively managed counterparts. The truth is that there’s more to the story than the headlines would suggest when it comes to these ETFs.